During its Nov. 18, 2024 meeting, the Northwest Local School District Board of Education approved the district’s Five Year Forecast as presented by Treasurer Amy Wells. State law in Ohio requires school districts to submit a Five Year Forecast to the Ohio Department of Education and Workforce twice annually.
This approval was granted with the understanding that by May 2025, the Board will need to make critical decisions regarding a possible operating levy, reductions, or a combination of the two.
The NWLSD Five Year Forecast provides a comprehensive look at the District’s financial health, funding sources, and anticipated challenges. This transparent assessment underscores the District’s commitment to maintaining financial stability while continuing to deliver quality educational services.
As has been discussed over the past several years, the district has two 10-year emergency operating levies that are near the end of life. The first was approved by the community in 2017 at 7.3 mills and will expire in 2027. The second was approved by the community in 2019 at 11.3 mills and it will expire in 2029. Combined, they make up almost 20 percent of NWLSD’s operating budget. The levies are needed to maintain current district operations. Without them, the district will have to reduce operations. NWLSD consistently has one of the lowest costs per pupil expenditures in the county.
The district is steadfast in efforts to keep costs contained. In 2019, the district entered into a 3 percent partnership with the community, committing to limit annual operational growth to no more than 3 percent to ensure its funding needs remain affordable and sustainable. NWLSD has remained true to this commitment, successfully managing its budget while continuing to provide quality education and services to students and families. As a result, over the past 14 years, Northwest Local School District's operating costs have increased by 20 percent, averaging about 1.5 percent per year.
The forecast highlights several key areas:
Revenue Outlook: Northwest Local School District currently receives 70 percent of its funding from local property taxes, 25 percent from the state, and the remainder from other local sources. However, this is changing. The state funding formula requires the local community to contribute more based on its capacity - driven by increases in local property values and income - while the state pays only the difference. As a result, over the course of the Five Year forecast, the state’s share of funding is projected to decline to 17 percent. The district is also moving from a state formula funded district to a "Guarantee Funded” district due to its aging population and fewer students, with the change in funding models. This assists our community by maintaining additional state dollars.
Expenditure Trends: The District is managing rising costs in special education, transportation, and state-mandated initiatives. A notable trend is the growing need for specialized services, which now comprise 20 percent of the total budget.
Facility Needs: Five buildings are over a half-century old and need to be replaced. The report identifies over $35 million in deferred maintenance, not including Colerain Elementary and Middle Schools, that is needed to ensure safety, compliance, and adequate capacity for growing instructional demands.
Cash Reserve Policy: Maintaining strong cash reserves remains a priority for the district. This enables the district to respond to unexpected economic changes while continuing to invest in key areas such as technology and infrastructure.
Strong schools rely on strong community partnerships. This forecast allows NWLSD to plan for the future while remaining transparent about needs.
Looking ahead, the District will engage with stakeholders as it aligns resources with instructional priorities and prepares for critical decisions about operating levies, renewals and potential operational adjustments.
For additional information, access the following resources:
The Five Year Forecast Schedule of Revenues, Expenditures and Changes in Fund Balances
Five Year Forecast Assumptions
View the presentation of the Five Year Forecast here: